Global spending on the digital transformation (DT) of business will reach $1.8 trillion in 2022 – an increase of 17.6 percent over 2021.
According to a new update to the IDC Worldwide Digital Transformation Spending Guide, DX spending will sustain this pace of growth over the 2022-2026 forecast period with a five-year compound annual growth rate (CAGR) of 16.6 percent.
IDC senior research manager in customer insights & analysis, Craig Simpson expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic.
“As organisations accelerate their pursuit of a digital-first strategy, they are channelling these investments into both internal operations and external direct engagement. The investments in internal operations are largely focused on improving efficiency and resilience while customer experience transformation has become a DX priority for many companies.”
IDC’s data found that operational investments stand out among the 51 strategic priorities included in the DX Spending Guide.
The DX priorities that will see the largest investment in 2022 include Back Office Support and Infrastructure, Smart Manufacturing, and Digital Supply Chain Optimization.
Together, these three investment areas will represent more than $620 billion in DX spending this year, IDC claims.
Other operational priorities that will see significant investments in 2022 according to the firm’s data include Connected Assets, Facility Management, and Operationalising Data and Information.
Customer experience investments, such as Omni-Experience Engagement, and Omni-Channel Commerce, will account for more than $300 billion in DX spending in 2022.
IDC said the US was the largest geographic market for DX spending in 2022, accounting for nearly 35 percent of the worldwide total. Western Europe will be the second-largest region for DX spending, followed closely by China.
Digital transformation spending in EMEA will be nearly $469 billion in 2022, a year on year rise of 16.7 percent.
